The U.S. natural gas industry continues to expand facilities to take advantage of the booming business at gas marketing hubs.
NorAm Gas Transmission (NGT), a subsidiary of NorAm Energy Corp., Houston, has completed expansion of its Perryville hub in North Louisiana that provides U.S. Northeast and Midwest markets greater access to Midcontinent gas reserves. NorAm Energy formerly was Arkla Energy Inc.
Western Gas Resources Inc. (WGRI), Denver, is expanding gas gathering and processing operations in the Permian basin of West Texas. The company's latest actions include acquiring more gas gathering and treatment facilities and installing a new interconnect at Katy hub, west of Houston.
U.S. gas marketing hubs have seen their business grow at a rapid pace since implementation of Federal Energy Regulatory Commission Order 636 (OGJ, Sept. -D, p. 27).
NORAM
In first phase enhancements at Perryville, NGT installed compression at an existing interconnect that enables it to sell on a firm seasonal basis 200 MMcfd of pipeline capacity to Perryville customers.
The new capacity, available Nov. 1 Mar. 31, is sold out on a firm basis this winter, but some interruptible capacity may occasionally be available.
Under a second phase expansion, NGT completed three other pipeline connections at Perryville with Columbia Gulf Transmission and Tennessee Gas Pipeline's 100 and 800 lines. Other interconnections are with NorAm unit Mississippi River Transmission, ANR, Koch Gateway, Trunkline Gas Co., Texas Eastern Transmission, and Texas Gas Transmission.
A connection with El Paso Natural Gas on the west end of NGT's system, placed in service Nov. 3, provides Anadarko, Permian, and San Juan basin supplies access to U.S. Northeast and Midwest markets through a westeast crosshaul to the Perryville hub. Other Midcontinent basins tied into the Perryville hub are Arkoma, East Texas/North Louisiana, and Hugoton.
Depending on continued strong demand, NGT may proceed with two more projects that can add 150 MMcfd of pipeline capacity from the Anadarko, Permian, and San Juan basins.
In addition, NGT will have firm storage capacity available by Apr. 1, 1995. The amount of capacity has not been determined, but NGT is notifying customers now so it can determine prospective demand and customers.
WESTERN GAS
WGRI signed a definitive agreement to purchase the West Texas gas gathering and processing assets of Oasis Pipe Line Co., Houston.
The assets include 14 Gathering systems consisting of about 600 miles of pipeline and two gas treating plants handling about 140 MMcfd from more than 500 wells. Most of the gathering systems have direct access to a 36 in. Oasis intrastate pipeline running to Katy from Waha hub in West Texas.
dosing of the acquisition is expected Nov. 30, effective Dec. 1, subject to antitrust review.
Effective Oct. 1, WGRI purchased the 15 MMcfd Middle Concho plant from Enron Gas Processing Co., which averages output of 8 MMcfd of gas and 46,000 gal/day of natural gas liquids. WGRI plans to consolidate the plant with its Midkiff/Benedum complex.
In addition, WGRI plans to sign a long term contract with Oasis to provide firm intrastate transportation for 100 MMcfd of gas. To that end, WGRI is to install a 200 MMcfd pipeline interconnect between the Oasis pipeline system and its own Katy hub and storage facility.
Companies with existing interconnects at Katy include Amoco Gas Co., Houston Pipe Line Co., Koch Gateway Pipeline, Lone Star Gas, MidCon Texas, Tejas Gas, Tennessee Gas, and Transco Pipeline. Dow Pipeline Co., Channel Industries Gas Co., and Natural Gas Pipe Line are scheduled for connection by Dec. 1.
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